Volatile Economy Makes Gold Space 'Increasingly Attractive'

October 12, 2023 -- InvestorsHub NewsWire -- via NetworkNewsWire Editorial Coverage: In uncertain economic times, stability is a rare commodity. Historically, one of the most stable spaces during fragile economies is gold, a highly liquid asset that carries no credit risk and preserves its value over time. The precious metal also benefits from diverse sources of demand: as an investment, a reserve asset, gold jewelry, or a technology component. These attributes mean gold can enhance a portfolio in three ways: delivering long-term returns, improving diversification and providing liquidity. Many gold mining companies, including GEMXX Corp. (OTC: GEMZ) (Profile), are seeing significant growth and success during the recent volatile economy. Quickly graduating past startup phase and seeing global growth in mere months, GEMXX is now eyeing vertical integration — a noteworthy differentiator in the gold sector. In addition to gold, the company mines ammolite, a gemstone similar to black opal. With colored gems sparking a hot jewelry trend, this added offering distinguishes GEMXX from many in the gold space. Other mining companies seeing notable success in the gold sector include Wheaton Precious Metals Corp. (NYSE: WPM); McEwen Mining Inc. (NYSE: MUX); Fortitude Gold Corp. (OTCQB: FTCO); and Gold Fields (NYSE: GFI).

• Through time, gold "has proved, over hundreds and even thousands of years, to be a reliable store of value."
• The pending acquisition of the Yukon Gold Project would significantly increase GEMXX's gold asset portfolio.
• A leading producer of high-quality finished ammolite jewelry, GEMXX is the only publicly traded ammolite company in the world.
• GEMXX has achieved significant milestones recently, and the company controls each stage of its production.

Click here to view the custom infographic of the GEMXX editorial.

Proven Reliable 'Store of Value'

A recent "U.S. News & World Report" article stated that "gold has proved, over hundreds and even thousands of years, to be a reliable store of value." The article went on to note that "whatever events happen, gold has a robust value that stays relatively consistent over time in terms of its purchasing power." The precious metal gold can compete against other relatively safe investments such as the U.S. dollar and treasuries, the article notes, but "because the Fed's efforts to combat inflation appear to be working, gold looks increasingly attractive compared to assets like [treasuries]."

With that in mind, the astonishing progress made by GEMXX Corp. (OTC: GEMZ) in the past several months may prove to be even more significant than at first glance. In 2022, the company, which has no long-term debt, reported a 170% increase in revenues year over year, with assets totaling $19,215,841, an increase of more than a $1 million. GEMXX began this year with more than 1,400 acres already in its gemstone and gold resource portfolio, including the Snow Creek gold mine site, consisting of 498 acres with 80% mineable, and the Rosella Creek gold mine site, consisting of 240 acres with 90% mineable.

In September, GEMXX signed a binding letter of intent ("LOI") to acquire an initial 50% stake in the Yukon Gold Project, which consists of 145 full Yukon quartz claims located in Canada's Yukon Territory. "In addition to our Snow Creek and Rosella Creek Gold deposits, the acquisition of the Yukon Gold Project will significantly increase the company's gold asset portfolio," said GEMXX CEO Jay Maull. "Our plan to derisk revenues through production of the world's most sought-after commodity is happening fast.

"By adding up to four million ounces of gold to the company's assets, GEMXX will increase shareholder value and provide a long-term, stable and profitable investment for years to come," Maull continued. "We will not only enjoy a significant reduction in the cost of goods for our entire gold jewelry line, but this acquisition will bring the company closer to our goal of becoming vertically integrated."

The Ammolite Distinction

The vertical integration GEMXX is focused on is ammolite. Along with its $300 million in gold reserves, GEMXX has more than $600 million in ammolite reserves, including its 360-acre Northern Block, a proven resource, and its 217-acre Southern Blocks, both in southern Alberta, Canada. The only publicly traded ammolite company in the world, GEMXX is a mine-to-market gold, gemstone and jewelry producer that specializes in this gem-quality material that is cut from the fossilized shells of extinct sea creatures known as ammonites. Extremely rare, ammolite is found only along the eastern slopes of the Rocky Mountains in Alberta, Canada — where GEMXX's ammolite reserves are located.

Leading independent market research companies such as Data Monitor and GIA estimate the worldwide market for luxury or premium lifestyle products, which include gems and jewelry, at more than $90 billion annually and growing. Ammolite sales around the world have seen unprecedented growth over the past 20 years. Worldwide retail sales are now estimated to top $100 million, and with colored gems sparking a new trend in the jewelry space, that number appears certain to increase. The organic gemstone boasts a dazzling range of colors and patterns and is highly desired for freeform natural cabochons and assembled jewelry pieces; the iridescent gem could be a top contender in the growing market.

A recent Fashionisto article reported that while diamonds are unspeakably timeless, they are losing their popularity to colored gemstones. "Diamonds have dominated the markets for decades, especially in engagement rings," the article states. "[But] gemstones are back in focus to revel in their colorful glory. The fascination and love for gemstone jewelry isn't new. Since antiquity, they have been believed to carry talismanic properties, divine powers and healing abilities by several civilizations. The rising trends of these stones over diamonds show that they are still as magnanimous and vibrant as ever.

"While gemstone jewelry isn't a new trend, it certainly is the most sustainable one," the article concludes. "People have preferred colored jewels since antiquity for protection, fortune, good health and love. You can expect the similar favoritism in the future too. The market has significantly grown in the past ten years and expected to go even higher in the next decades."

Tried, Tested Management

The success of any company often lies in the hands of its management team — and GEMXX leaders have proven to be expert, proficient and successful in what they do. GEMXX team members have together accumulated more than 160 years in gold, gemstone and jewelry production expertise along with extensive global operations and sales experience. Team members possess extensive backgrounds in every facet of the gold and gemstone business.

That expertise was tried and tested during the COVID-19 pandemic. While many companies had to ultimately scale down or restructure, GEMXX doubled its production volume to meet demand while continuing to grow operations and remain cash flow positive. This often-overlooked asset — a team rich with expertise — allows GEMXX to excel in product development, maintain rigorous quality control measures, and maximize profitability. GEMXX leverages its collective leadership wisdom to drive innovation, deliver exceptional products and optimize business strategies to achieve both short-term and long-term objectives.

Currently the company is focused on its goal of raising $6 million in investment funding through a fully qualified Reg-A offering. This funding will enable GEMXX to begin work on a new, large-scale ammolite mine while also expanding current gold mine operations as it works to meet the rising global demand for its products. The company is also working to complete SK-1300 resource reports on already owned gold-producing assets as well as recently acquired gemstone resources. GEMXX management anticipates that these reports could increase the company's resource base to as much as $976 million and resource book value from $14.7 million to $97.6 million, or 6.6 times its current value.

In addition, GEMXX is preparing for financial audits with the intention of initially trading on the OTCQX and ultimately uplisting to the New York Stock Exchange or NASDAQ. That upward movement could create more opportunities for growth and provide even better shareholder value.

Long-term, GEMXX is committed to the sustainable and environmentally responsible development of its resources. Mining companies operating in Canada earn a stronger ESG score than all other mineral-rich countries because of the country's stringent environmental regulations, strong governance, and commitment to safety and community.

Clearly, GEMXX has achieved significant milestones recently, and it's worth noting that the company controls each stage of its production, including gold mining, gemstone production, jewelry manufacturing, and global distribution. "We are tremendously pleased with the development of the company over the past several months, and we are extremely excited for the anticipated growth," said Maull. "We look forward to updating shareholders as we move into full gold and gemstone production. We intend to do everything necessary to drive shareholder value."

The Quest for Mining Success

Other mining companies are also in the quest for mining success.

Wheaton Precious Metals Corp. (NYSE: WPM) is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. The company's most recent operational results included the generation of more than $200 million of operating cash flow, primarily driven by significant sequential improvement at the recently commissioned expansion at its largest asset, Salobo. The company also continues to see momentum on the corporate development front with the addition of a new gold stream on Lumina Gold's Cangrejos project and the expansion of our existing gold stream on Artemis Gold's Blackwater project.

McEwen Mining Inc. (NYSE: MUX) is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina; in addition, it owns approximately 52% of McEwen Copper, which owns the large, advanced stage Los Azules copper project in Argentina. The company just reported new assay results from its Stock property, which is part of the Ontario-based Fox Complex. According to the report, geological investigations have identified two principal plunge directions (or vectors) controlling mineralization at Stock with two additional "intriguing results," which suggest other directions for the Stock resource to grow.

Fortitude Gold Corp. (OTCQB: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins and strong returns on capital. The company has announced multiple oxide gold drill intercepts at and near surface along the Isabella Pearl trend. "Intercepting additional oxide gold mineralization at and near surface along our trend speaks to the exciting potential of finding additional gold deposits and operational longevity at Isabella Pearl," said Fortitude Gold CEO and president Jason Reid. "We look forward to the next round of drilling with several goals in mind

Gold Fields (NYSE: GFI) is focused on becoming the preferred gold mining company delivering sustainable, superior value. Gold Fields announced that is has committed to driving positive social and environmental change by embedding ambitious targets in a new sustainability-linked loan backed by a syndicate of 10 Australian and international banks. The sustainability-linked indicators are the same as those being used by Gold Fields in its five-year $1.2 billion revolving credit facility (RCF) announced in May this year. They are also aligned to the company's strategy and its 2030 ESG targets, which prioritize gender diversity, decarbonization and water stewardship.

With the economy in almost constant flux, there may never be a better time to look at investing in mining, either gold or gemstones — or even both. With uncertainty being the one certain thing looking forward, a space known for being stable and reliable is a rare option.

For more information about GEMXX, please visit GEMXX.

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